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a. Suppose you have two variables and . Demonstrate that it is possible to obtain the 2 from a regression between these two variables using

a. Suppose you have two variables and . Demonstrate that it is possible to obtain the 2 from a regression between these two variables using their correlation coefficient (). [

b. Assume the random variable is regressed on , is their correlation coefficient and & are the sample standard deviation for and , respectively. Show that zc = (/ ), where zc is the OLS slope coefficient from the regression.

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